The ____ rate is the interest rate charged on the Fed's short-term loans to depository institutions.
A) federal funds
B) prime
C) primary credit lending
D) real

Question

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The primary credit lending rate is the interest rate charged by the Federal Reserve's lending facility, the discount window, for short-term loans to depository institutions. The federal funds rate is the interest rate at which banks lend reserves to each other overnight. The prime rate is the interest rate commercial banks charge their most creditworthy customers. The real rate is the nominal interest rate adjusted for inflation.

The ____ Rate Is the Interest Rate Charged on the Fed's